Behaviour of Individual Investors in Stock Market Trading: Evidence from India

Raut, Rajdeep Kumar; Das, Niladri; Mishra, Raghav Kumar

doi:10.1177/0972150918778915

Cited by 30 publications

(24 citation statements)

References 60 publications

(53 reference statements)

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“…It has been observed globally that the influence of behavioural biases is widely experienced in the decision of financial market participants which leads to an inefficiency of stock markets and increase the fragility of the financial system. Behavioural patterns which impact investors' decision-making have also been evidenced in the Indian capital market and documented by some researchers, namely, Chandra and Kumar (2011), Lakshman, Basu, and Vaidyanathan (2013), Prabhu and Vachalekar (2014), Kumar and Rajkumar (2014), Subramanya and Murthy (2013) and Raut, Das, and Mishra (2018).…”

Section: Discussionmentioning

confidence: 85%

Investment Decision-Making Process between Different Groups of Investors: A Study of Indian Stock Market

Raut

Kumar

2018

Asia-Pacific Journal of Management Research and Innovation

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This article attempts to identify differences in perception for the seven most prominent behavioural biases between two groups of individual investors: (a) experienced and (b) new to the market investors in investment decision-making. Primary data have been collected from the active individual stock market participants from the four states of India, namely, Jharkhand, Bihar, Odisha and West Bengal. Findings of this study suggest that respondents have a similar perception for availability bias, representativeness and emotional contagion while the other four factors such as herding, informational cascades, anchoring and overconfidence show significant discrimination in investment decision-making between the two groups of investors. Herding is identified as the most discriminatory factor for investor groups.

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Section: Discussionmentioning

confidence: 85%

Investment Decision-Making Process between Different Groups of Investors: A Study of Indian Stock Market

Raut

Kumar

2018

Asia-Pacific Journal of Management Research and Innovation

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“…Individuals exhibiting overconfidence bias have greater confidence in their ability to make decisions than they possess (Bonney et al, 2020). These individuals overestimate their knowledge and underestimate risks, while making investment decisions (Raut et al, 2020) and online purchase (Dowling et al, 2020). They rely on limited information while making a purchase decision , and hence more likely to adopt a new technology where information is limited.…”

Section: Role Of Overconfidence Biasmentioning

confidence: 99%

How a doer persuade a donor? Investigating the moderating effects of behavioral biases in donor acceptance of donation crowdfunding

Theerthaana¹,

Manohar

2021

JRIM

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Purpose The concept of donation crowdfunding has been drawing enormous attention as it connects donors worldwide in a shorter time at a relatively lower cost. This paper aims to integrate two unified theories, namely, behavioral finance and unified theory of acceptance and use of technology model, to investigate on the motivators and deterrents that influence prospective donors to adopt and use donation crowdfunding. The study also substantiates the significance of donors’ behavioral biases through the moderating effect in the crowdfunding adoption process. Design/methodology/approach The study used survey method for data collection and the data set was obtained from the sample of respondents belonging to India and Bangladesh. The proposed structural equation modeling is tested using SPSS 23.0 and AMOS 23.0. Findings The study reveals that performance expectancy, effort expectancy, facilitating conditions and trust significantly enhance the intention to adopt donation crowdfunding. Also, biases including overconfidence bias, herding bias and regret aversion bias are found to have significant moderating effects on the relationship between the behavioral intention to adopt donation crowdfunding and use behavior. Practical implications By investigating motivators and deterrents of the adoption of donation crowdfunding, the study renders lucrative insights for the donation crowdfunders in devising a donation fundraising campaign that motivates the prospective donors to provide financial contribution. Originality/value The study establishes its novelty in explaining the adoption behavior of donation crowdfunding with behavioral bias moderators as a theoretical paradigm. Furthermore, the unified theory of acceptance and use of technology model is extended by introducing, the variable “trust,” while studying the adoption behavior of donation crowdfunding.

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“…It has been established that an individual’s psychology is one of the most important factors which influences his/her perception towards financial decision-making (Akhtar, Thyagaraj, & Das, 2018; Crysel et al, 2012; Raut, Das, & Mishra, 2018; Young, Gudjonsson, Carter, Terry, & Morris, 2012). The risk-taking attitude, which is itself a major contributor towards a definite investment style (Hunter & Kemp, 2004), largely depends upon the personality of an individual (Grable, 2000; Young et al, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

Big-five Personality Traits and Pro-environmental Investment Specifics from an Emerging Economy

Akhtar

2019

Global Business Review

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Investment in pro-environmental financial assets like ‘green shares’ is rapidly emerging field in the area of personal finance. However, there has been a dearth of studies that could possibly explain the factors that indulge an investor to invest in ‘green shares’, in the context of a growing economy like India. Therefore, the present study makes an attempt to analyse the possible role of personality trait of an individual investor, keeping in mind his concern towards the environment, on his investment decision in ‘green shares’. This study has incorporated the Big-Five personality traits, along with the measures that determines an individual’s affection towards his environment and its relationship with his decision to invest in environmental friendly companies. A total of 572 individual investors participated in the study by completing a questionnaires about their personality, environmental concern and investment decision through disproportionate stratified random sampling. The collected data was analysed using Structural Equation Modelling (SEM). The results of the present study revealed that individuals largely differ in critical ways in terms of their personality traits, which in turn plays a very detrimental role towards deciding the investment decision in ‘green shares’.

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Behaviour of Individual Investors in Stock Market Trading: Evidence from India

Cited by 30 publications

References 60 publications

Investment Decision-Making Process between Different Groups of Investors: A Study of Indian Stock Market

Investment Decision-Making Process between Different Groups of Investors: A Study of Indian Stock Market

How a doer persuade a donor? Investigating the moderating effects of behavioral biases in donor acceptance of donation crowdfunding

Big-five Personality Traits and Pro-environmental Investment Specifics from an Emerging Economy

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